Expense Spend Review

1. Payables Review for Example Corp, Inc.
From Payables Review conducted October 18, 2014 by Expense To Profit.
Summary
2013 Expenses: $22.0M
Payroll /
Benefits
$11.0M
COGS
$2.2M
Indirect
$8.8M
50%
10%
40%
Outside
Scope
Indirect: $8.8M
Within
Scope of
Spend Review
Savings Targets are estimated and for prioritization and planning
purposes; actual savings may be greater or less than the target ranges.
Categories and Next Steps
Rent
Professional
Services
Marketing &
Sales
Actual Spend
12 mo. ($M)
Software/Comm
Admin/Other
Forecast
2-year ($M)
2.64
4.93
6.60
3.17
1.76
Savings
Target %
0%
3%
10%
15%
8%
Savings
Target $
$0
$147,840
$660,000
$475,200
$140,800
Total Target Savings: $1,423,480
Specific Category Detail Below
1.32
3.08
2.20
1.32
0.88
~ ~
~ ~
Category
Current Vendors
1. Marketing
ITPrintingPros
2. IT Contract Labor
IT System Team
3. RecordsManagement
Shredex, Iron Mountain
4. Training
Training Solutions
5. NetworkAdministration
XYZ Networks
Spend
Past 12
months
$550,000
$800,000
$230,000
$35,000
$225,000
Illustration
Forecast Spend
next 24 months
$1,200,000
$1,900,000
$460,000
$140,000
$450,000
Expected Savings Range
Low /High Low /High
15%
30%
5%
10%
10%
25%
25%
40%
10%
15%
$180,000
$360,000
$95,000
$190,000
$46,000
$115,000
$95,000
$190,000
$45,000
$67,500
Next Steps
- Conduct RFP for next three years
- Consolidate volume for RFP
- Use lower labor categories by
shifting PM responsibility to
internal resource
- Move to single vendor
- Implement contract
- Request quote from 3 vendors
- Utilize on-line modules
- Reduce Service levels
- 3-year agreement pricing
Time to Savings
3 months
3 months
6 months
6 months
2 months
Expense To Profit has expertise in expense management and will lead a diagnostic conversation to identify savings opportunities and next steps.
The review is currently offered at no cost. Participating companies are under no obligation to act on recommendations or employ us.
12.MarketingConsulting
XYZ MARKETING
13.Office Supplies
Office Depot, Staples
14.Telecom – Wireless
Verizon, AT&T
15.Outbound Call Center
B2B Marketing
$240,000
$82,000
$40,000
$100,000
To conduct a Payables Review:
1. Schedule with Marc Freedman marc@expensetoprofit.com
2. Print hard-copy list of a twelve month payments summary by GL category then
by vendor for meeting
3. Allow for 45 minutes - attendees should include CEO or CFO
$300,000
$205,000
$80,000
$150,000
5%
10%
5%
12%
10%
20%
0%
10%
$15,000
$30,000
$10,250
$24,600
$8,000
$16,000
$0
$15,000
- Reduce support; shift to internal
- Join group agreement
- Review bills for all employees
- Optimize service plans
- Audit invoices from 2B
- Validate billing to agreed metrics
1 month
1 month
6 months
2 months
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